Updated: 20-Feb-26 09:33 ET
Highlights
- Personal income increased 0.3% month-over-month in December, as expected, following an upwardly revised 0.4% increase (from 0.3%) in November.
- Personal spending was up 0.4% month-over-month (Briefing.com consensus: 0.2%) following a downwardly revised 0.4% increase (from 0.5%) in November.
- The PCE Price Index jumped 0.4% month-over-month (Briefing.com consensus: 0.3%), while the core PCE Price Index, which excludes food and energy, also rose 0.4% month-over-month.
- On a year-over-year basis, the PCE Price Index increased 2.9%, versus 2.8% in November, and the core PCE Price Index increased 3.0%, versus 2.8% in November.
- The PCE Price Index for Goods was up 0.4% in December after increasing 0.1% in November. The index was up 1.7% year-over-year in December versus 1.5% in November.
- The PCE Price Index for Services was up 0.3% in December after increasing 0.2% in November. The index was up 3.4% year-over-year in December, unchanged from November.
- Wages and salaries increased 0.2% month-over-month in December after increasing 0.5% in November.
- Rental income was flat month-over-month in December after increasing 0.1% in November.
- Personal interest income increased 0.2% month-over-month for the sixth straight month in December. Personal dividend income was flat month-over-month after increasing 0.8% in November.
- Real disposable income was flat month-over-month in December after increasing 0.1% in November. Real personal spending was up 0.1% month-over-month in December versus 0.2% in November.
- The personal savings rate, as a percentage of disposable personal income, fell to 3.6% in December from 3.7% in November.
- The key takeaway from the report, other than the fact that spending outpaced income in December, is that the core PCE Price Index sported a 3-handle on a year-over-year basis. This is a key inflation gauge for the Fed, and it doesn't hold the key to a near-term rate cut.
| Category | DEC | NOV | OCT | SEP | AUG |
| Personal Income | |||||
| Total Income | 0.3% | 0.4% | 0.1% | 0.4% | 0.4% |
| Wage and Salary | 0.2% | 0.5% | 0.3% | 0.4% | 0.3% |
| Disposable Income | 0.3% | 0.3% | 0.1% | 0.3% | 0.4% |
| Savings Rate | 3.6% | 3.7% | 3.7% | 4.0% | 4.1% |
| Personal Consumption | |||||
| Total (Nominal) | 0.4% | 0.4% | 0.5% | 0.4% | 0.6% |
| Total (Real, Chain $) | 0.1% | 0.2% | 0.3% | 0.1% | 0.3% |
| Core PCE Deflator | |||||
| Month/Month | 0.4% | 0.2% | 0.2% | 0.2% | 0.2% |
| Year/Year | 3.0% | 2.8% | 2.8% | 2.8% | 2.9% |
